China sets a lower economic growth target of 4.5% to 5% for 2026 as challenges loom

China sets a lower economic growth target of 4.5% to 5% for 2026 as challenges loom

BEIJING (AP) — China has set an economic growth target of 4.5% to 5% for this year, a slight decrease in the face of a prolonged property slump and other headwinds and uncertainty abroad.

Associated Press Chinese Premier Li Qiang speaks during opening session of the National People's Congress (NPC) in Beijing, Thursday, March 5, 2026. (AP Photo/Andy Wong) A military band member rehearses before the opening session of the National People's Congress (NPC) in Beijing, Thursday, March 5, 2026. (AP Photo/Ng Han Guan) Military delegates assemble before the opening session of the National People's Congress (NPC) in Beijing, Thursday, March 5, 2026. (AP Photo/Ng Han Guan) Chinese President Xi Jinping, second from left, and Chinese Premier Li Qiang, second from right, stand as they sing the national anthem during the opening session of the National People's Congress (NPC) in Beijing, Thursday, March 5, 2026. (AP Photo/Andy Wong) Military delegates chat before the opening session of the National People's Congress (NPC) in Beijing, Thursday, March 5, 2026. (AP Photo/Andy Wong)

China Congress

The target was announced Thursday in an annual report being presented by Premier Li Qiang at the opening session of this year's meeting of the National People's Congress. The report set the goal and added "while striving for better in practice."

The target was lowered from about 5% in each of the last three years. The economy grew 5% in 2025. Setting a range of 4.5% to 5% gives the government more leeway to adjust policies this year.

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This year's meeting of the 3,000-strong rubber-stamplegislaturewill also endorse a five-year plan setting policy priorities until 2030.

"In proposing these targets, we have considered the need to leave some room for structural adjustments, risk prevention, and reform in the opening year of this five-year plan period, so as to lay a solid foundation for delivering better performance in the coming years," the report said.

It included pledges to build a stronger domestic economy while also furthering Chinese leader Xi Jinping's ambitions to build China into a global leader in technology.

 

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